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Fri, 31/05/2019
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Be Wiser Guide to Student Car Insurance

There are many financial difficulties that come with being a student, with most scraping through with their loan to get from term to term. With rising accommodation costs and the expense of a social life, there are many considerations that students should take into account when setting out their monthly expenditure. If you plan to take your car with you to university, then insuring it will be another expense to add to this list.

Why car insurance is more expensive for students?
New drivers under the age of 25 face the highest insurance premiums because they are seen by insurers as statistically more likely to be involved in an incident that in a claim.

Being a new driver means you lack experience on the road and haven’t had the time to build up any no claims discount that many older drivers will have.

A student’s age group isn’t the only reason for their higher insurance premiums. They generally live in higher risk crime areas, where vandalism or burglary increases the risk factors when assessing their quotation for car insurance.

Tips – How to reduce your insurance costs
Take a look at our list of ideas, they could help reduce your costs;

  • If you haven’t bought your car yet remember your premium is influenced by the make, model and year of the car you drive
  • All cars are organised into one of 50 car insurance groups - the higher the insurance group, the more expensive the car is to insure
  • Consider the size of the engine, the larger the engine size usually means it is more expensive to insure
  • Advanced driving course – the Pass Plus certificate highlights to an insurer that you have more experience on the road. Some insurers could reduce your premium because of this 

Reduce the amount of insurance
If you’re not in a position to take an advanced driving course, and you already have a car, you might want to consider reducing the cost of the premium by reducing the amount of insurance you take out?

Have you considered third party fire and theft instead of fully comprehensive cover? Or would temporary insurance cover be more suitable for your needs?

Remember though, if the car is not being driven you must officially declare the car as SORN (Statutory off Road Notice) by informing the DVLA, or risk a fixed penalty of £100. You can find out more information about SORN vehicles by visiting the DVLA website: https://www.gov.uk/make-a-sorn

Increase your cars security
If, however, you plan to drive your car throughout your time at university, why not take a more practical approach and increaser the protection of the vehicle with an alarm, steering locks or an immobiliser. 

Have you considered Black Box Insurance?

This policy type involves a telematics box being fitted to your car to track how you drive. By monitoring your driving style, your insurer has evidence of whether you drive safely or not. Some insurers will reward safer drivers. Telematics insurance policies are typically cheaper than those without a black box.

And finally some important points to remember
The most telling of all influences when taking out your car insurance are the details you give or add when completing your insurance application is honest and accurate.

  • How many miles do you drive?
    The higher the mileage the more time you will spend on the road, increasing your risk of being involved in an incident. When you are asked, “How many miles do you drive each year”? Be accurate, changing the mileage to reduce your premium is not the right approach as you are misleading the insurer. Any future claims you make could be refused or only partly.
  • Adding an experienced named driver to your policy
    If you add an experienced driver to your insurance cover this signals to the insurer that a more experienced driver will be driving the car some of the time and could reduce your insurance premium.

    Never add an experienced driver to deceive your insurer or take out the policy in the experienced drivers name and put yourself down as a named driver, when in fact you are the primary driver. 

    This is this is known as ‘fronting’ and is a form of fraud. If the insurer discovers you have been dishonest they have grounds to cancel your policy or they can refuse to pay out the claim.
  • What is Voluntary Excess?
    The amount a policy holder voluntarily offers to pay on top of the compulsory excess - if a claim is made, this could reduce the cost of the policy. 

We would always suggest you take your time and research the different types of insurance cover available for students and young drivers.

A great starting to point to begin your search is Be Wiser Student car insurance https://www.bewiser.co.uk/driver/student